This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Shares of Tesla Inc (NASDAQ: TSLA) fell sharply on Thursday, declining as much as 7.3% at one point. As of 11.15am EST, however, the stock was down only 2.4%.
The growth stock's decline follows the electric-car maker's fourth-quarter earnings release. Tesla reported worse-than-expected adjusted earnings per share, likely explaining why shares are down today.
So what
Tesla announced fourth-quarter revenue of $10.7 billion, up 46% year over year. This was ahead of analysts' average forecast for revenue of $10.4 billion. Adjusted EPS of $0.80 was notably nearly double the $0.41 Tesla reported in the year-ago quarter, but lower than a consensus analyst estimate of $1.03.
The company's strong revenue and earnings growth was primarily driven by a 61% year-over-year increase in vehicle deliveries.
Now what
Management is optimistic about 2021. The company guided for vehicle deliveries this year to increase more than 50% versus 2020. This is an acceleration from the 36% year-over-year growth in total vehicle deliveries Tesla saw last year.
"While 2020 was a critical year for Tesla, we believe that 2021 will be even more important," management said in the company's fourth-quarter update.
Of course, investors should keep in mind that the stock's lofty valuation has arguably already priced in big growth for years to come.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
